In every economic system,scarcity imposes limitations on
A) households,business firms,governments,and the nation as a whole
B) households and business firms,but not the governments
C) local and state governments,but not the federal government
D) households and governments,but not business firms
E) business firms,governments,and the nation as a whole

Question

Quizplus · Accepted Answer

Scarcity, by definition, implies that there are limited resources to meet unlimited wants and needs. Therefore, in every economic system, scarcity imposes limitations on households, business firms, governments, and the nation as a whole. All entities in an economy must make choices about what to produce, how much to produce, for whom to produce, and what to do with the resources that are available to them. These choices are shaped by the scarcity of resources and the trade-offs that must be made.

In Every Economic System,scarcity Imposes Limitations on